As we head into New Year’s weekend, I find myself reading a lot of year in review and next year outlook material. I am a big fan of the overviews and outlooks but try to avoid those prognosticators making specific predictions they insist are actionable right now for the low, low cost of your retirement accounts. I find that by reading a bunch of the overviews, I can begin to develop a picture of potential developments and obstacles an industry or market my face in the New Year. I won’t act on them today but being aware of what might happen allows me to have a game plan ready if the events do unfold in the manner.
I probably spend more time on banking and real estate outlooks than anything else since that is where I focus much of my attention. Of course, I also believe that if you understand what is going on in the banking sector and real estate markets of a given city, town, nation or continent you know everything you need to know about the economy of that locale.
Deloitte, the global audit, consulting, financial advisory, risk management, and tax consulting firm released their Banking and Securities Outlook 2017 this month, and there are some key takeaways for us as investors. The company thinks that post-election may have brightened the outlook for banks and securities firms, but challenges still exist. Banks will face significant technology challenges in 2017 and will probably have to spend some money to build and protect a new model of banking in a Fintech world.
Deloitte is equally confidently caution about the overall economy saying “US gross domestic product (GDP) growth should be higher than in 2016, reflecting a tighter labor market. However, this almost-full employment is far from ideal ...